Quote:
Originally Posted by redpoint5
Do those have a guaranteed fixed rate, or does it adjust over time? Don't they have to reach maturation to cash out, or you forfeit the interest?
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They have a blended rate There is a fixed rate set at the time the bond is purchased. Right now it is 0%. There is also a variable rate based on the CPI that adjusts every 6 months. Right now that is 9.62%
They are 30 year bonds You can't cash them in for 1 year. From 1 year to 5 years you lose 3 months interest. After 5 years there is no penalty